Forex Flash: Crude oil at crossroads – RBS

FXstreet.com (Barcelona) - Crude oil was confirmed near the 86 retracement (23.6% of the Jun-Sep 2012), while the slow stochastic had formed a positive crossover in the oversold region. The view had also been confirmed by an opening today above the 5-day MA with a bullish gap.

However, “there is a strong obstacle in the form of 61.8% Fibo level at 89, which kept the market in a range for few days. As today the price is building pressure on the level, there would be good chances of breakout with further uptrend formation to 92 onto 94 and potentially 98. Stop would be below 86 on close. “writes Dmytro Bondar, a Technical Strategist at RBS.